Sales Pre-License RI Relationship State Law Questions Flashcards
It is a presumption of the RI Relationship law that all licensees initially have which type of the relationships with the consumer.
a. Sub-agency
b. Designated Client Representative
c. Transaction Facilitator
d. Dual facilitator
c. Transaction Facilitator
Which of the following is permitted by the RI Relationship law?
a. Sub-agency
b. Company dual agency (one licensee represents the seller, another licensee who is affiliated with the same firm represents the buyer in the same transaction).
c. Transaction facilitation
d. Presumption that all real estate licensees represent the seller
c. Transaction facilitation
Which of the following types of transactions requires a Mandatory Real Estate Relationship Disclosure form?
a. Residential rental
b. Sale of a business
c. Sale of commercial real estate
d. Commercial rental
a. Residential rental
A transaction facilitator may only perform ministerial acts. Which of the following is not considered a “ministerial act” in the agency law?
a. As a Transaction Facilitator informing a buyer the reasons a seller client is selling his/her property
b. Showing property to a buyer
c. Presenting a buyer’s offer to a seller
d. Providing a buyer with information about local property tax rates
a. As a Transaction Facilitator informing a buyer the reasons a seller client is selling his/her property
Which of the following are required to consent to a real estate licensee acting as a neutral dual facilitator to assist both a buyer and seller in the same transaction?
a. Buyer and Seller
b. Principal broker
c. Licensee who is working with buyer and seller
d. All of the above
d. All of the above
What is the deadline for a licensee to obtain the written, informed consent to act as a neutral dual facilitator?
a. Prior to presenting an offer to a seller client
b. Prior to closing
c. Prior to first showing of the seller’s property to the buyer
d. Prior to first in-person meeting with the buyer
a. Prior to presenting an offer to a seller client
Which of the following is not required to be included in the Mandatory Real Estate Relationship Disclosure form?
a. A list of the types of representation available to a prospective buyer, seller, tenant or landlord in a real estate transaction
b. A statement that written representation contracts are mandatory if a consumer wishes to work with a real estate licensee as a designated client representative
c. The legal duties and obligations owed to the buyer, seller, tenant or landlord in each type of relationship allowed by the new law
d. Written confirmation from each party signing the disclosure form that he or she has read, received, and understood the form
b. A statement that written representation contracts are mandatory if a consumer wishes to work with a real estate licensee as a designated client representative
Which one of the following does the agency law state that a principal broker must adopt?
a. New office policy for compensating transaction facilitators
b. Procedures as to whether members of teams can represent both sides of the same transaction
c. Procedures regarding when a licensee may act as a dual facilitator
d. Reasonable procedures to protect the confidential information of clients.
d. Reasonable procedures to protect the confidential information of clients.
Which one of the following is not a minimum requirement of a written client representation contract according to the RI Relationship law?
a. Terms of compensation
b. Signatures of all parties
c. Indemnification clause
d. Services and limitation on services to be performed by broker
c. Indemnification clause
If a real estate licensee is authorized to act as a dual facilitator in a real estate transaction, which one of the following does the new law require his or her principal broker to do?
a. Renegotiate the commission
b. Represent the seller
c. Protect the confidential information of both parties
d. Perform a CMA for the buyer
c. Protect the confidential information of both parties
A real estate licensee must obtain the informed consent of the appropriate parties in order to act as a dual facilitator. Which one of the following is not legally required to be included in the written informed consent?
a. The dual facilitator is authorized to assist both parties in a transaction but shall be neutral as to any conflicting interests between the parties to the transaction.
b. A dual facilitator shall not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe a duty to protect the confidential information of all parties and a duty to account for funds.
c. A dual facilitator shall refer a consumer to another company if the consumer refuses to give his or her written informed consent for the licensee to act as a dual facilitator.
d. Confidential information obtained by a dual facilitator from either party may not be disclosed except as otherwise permitted in the agency law.
c. A dual facilitator shall refer a consumer to another company if the consumer refuses to give his or her written informed consent for the licensee to act as a dual facilitator.
Which of the following is not an example of when a dual facilitator may disclose the confidential information of one of the parties?
a. Rhode Island law requires disclosure.
b. The party expressly authorizes disclosure.
c. The information is needed by a licensee to defend a lawsuit or claim brought against him or her by the client.
d. The dual facilitator’s relationship with the party has terminated.
d. The dual facilitator’s relationship with the party has terminated.
If a party refuses to consent to a real estate licensee’s acting as a dual facilitator, which one of the following does the law expressly allow the principal broker to do?
a. Refer the non-consenting party to another company.
b. Designate another licensee to represent one of the parties as a designated client representative with the permission of the party who did not consent to the dual facilitator relationship.
c. Inform the non-consenting party that he or she will be assigned to another affiliated licensee.
d. Refer the party who consented to the dual facilitator relationship to another company.
b. Designate another licensee to represent one of the parties as a designated client representative with the permission of the party who did not consent to the dual facilitator relationship.
Which one of the following is a true statement about a dual facilitator and a comparative market analysis (CMA)?
a. A dual facilitator cannot prepare a CMA for either party after a dual facilitation situation arises as it may adversely affect one party’s bargaining position relative to the other party.
b. A dual facilitator may provide a buyer with a copy of a CMA which the dual facilitator prepared for the seller before the dual facilitation arose, regardless of whether the seller consents to sharing the CMA.
c. A dual facilitator may prepare a CMA for both parties after the dual facilitation arises if the CMA shows that the property is priced correctly.
d. A dual facilitator may provide a buyer with a copy of a CMA which the dual facilitator previously prepared for the seller provided that the buyer promises not to tell the seller.
a. A dual facilitator cannot prepare a CMA for either party after a dual facilitation situation arises as it may adversely affect one party’s bargaining position relative to the other party.
Which one of the following is not legally required to be included in the Mandatory Real Estate Relationship Disclosure form?
a. A statement that a principal broker and his or her affiliated licensees must disclose their relationship to a buyer, seller, landlord or tenant in a real estate transaction.
b. A statement that if a consumer wishes to change his or her relationship with a real estate licensee from a transaction facilitator to a designated client representative, it must be done no later than the closing.
c. A statement that all affiliated licensees not appointed as a designated client representative for the consumer may represent another party in the same transaction as a designated client representative.
d. An explanation of the potential conflicts of interest that exist if a licensee acts as a designated client representative for more than one party in the same transaction.
b. A statement that if a consumer wishes to change his or her relationship with a real estate licensee from a transaction facilitator to a designated client representative, it must be done no later than the closing.
